John Lewis Strategy Shift KATIE ZAJICEK, MATT SASSU, UDAY DIPTA, SHAWN DAVIS

Transcription

1 John Lewis Strategy Shift KATIE ZAJICEK, MATT SASSU, UDAY DIPTA, SHAWN DAVIS

2 Agenda Problem Statement Recommendation Strategy Overview Implementation Financials Risks and Mitigation Assumptions Conclusion

3 Current issues Brexit threatens multiple areas of business Employee sourcing Supplier relationships Sourcing Shift to online shopping Decreased need for in store employees Lower profits and bonuses Overcoming the challenges Cross functional training of in-store employees Revive customer service focus Improve logistics of supplier and customer interactions Support supplier relationships by engaging their specific expertise

4 John Lewis is a highly prestigious firm with many synergies Automate supply chain and online orders Grocery delivery retains personal shopping touch Experiential Luxury cruises cater to high worth individuals

5 Situation analysis Strength Largest multichannel retailer Superior service Prestigious member partnership Opportunity Embrace move to online shopping Support relationships through personalized service Weakness Susceptible to import/export restrictions Impacted by online shopping shift Threat Large competitors Profitability of brick and mortar stores Loss of suppliers and employees

6 Competitor analysis Company Store Type Brand Product Customer Income John Lewis Marks & Spencer Department John Lewis Fashion, home goods, tech Peter Jones Consumer goods High High/Mid Supermarket Waitrose Grocery Mixed 353 Online Bricks & Clicks Consumer goods, Grocery Department, Supermarket Luxury consumer goods Harrods Department Luxury consumer goods Tesco Supermarket, Convenience Mixed # of stores 12 High 344 High 330 Grocery Mixed 3400 Sainsbury Supermarket Grocery Mixed 1312

7 Alternatives Alternative Pro Con Sell department stores to Marks & Spencer Similar distribution and customer Lose independence, potential growth, prestigious partnerships Split and merge supermarket division to Sainsbury Maintain emphasis on quality products and achieve larger reach Lose independence, potential growth, prestigious partnerships Downsize company and automate in-store system and channels Consistent with current trends Less customer interaction, lower expected bonuses, damages brand reputation

8 Solution diagram Challenges Use of employees Bonus and compensation Supplier relationship Supply chain Online management Solutions Yacht tours Online delivery Food, fashion, technology installs Extended personal customer service focus stabilizes employee use, promotes relationships, and builds commission based bonus. Block chain Automation Logistical enhancements support the Growing complexity of enhancement of suppliers And interactions online

9 Changes to available workforce Automation will replace 20% of workforce (17,000 lower level employees) Brexit will cause loss of 10,000 of these employees Remaining 7,000 will shift to new customer focused positions Grocery delivery, cruise staff, personal shopping consultants

10 Implementation in Waitrose grocery stores Automate supply chain through block chain Add online grocery ordering and delivery 100M investment in software implementation (includes hardware, software, IT professionals and training) Retain customer focus and personal touch

11 Implementation for Prestige Worldwide yacht and cruise liners Luxury yacht day trips (under 3 days) Small capacity and short trips Personalized luxury services tie in retail (shopping and shopping consultants) Build 2 luxury cruise ships 700M 3-4 day Scandinavian cruises 7-10 day Mediterranean cruises

12 Yacht and cruise 3 year timeline Year 1 Year 2 Year 3 Day trip cruises Begin build of 2 large cruise ships Continue build Begin long duration cruises

13 Cruise details Luxury yacht day trips ( < 3 days ) Scandinavian and Western Europe (Norway, Sweden, Finland, Denmark, France, Spain, Portugal, U.K.) Extended large capacity cruises ( > 7 days ) Mediterranean destinations Italy, Sicily, Greece, Crete, Cyprus, Turkey, Malta

14 Financial Projections

15 Assumptions for financial calculations

16 Assumptions Import and export restrictions, increase in food price, and exchange rate resulting from Brexit will affect all competitors Connections with prestigious universities will supply the technological expertise required for automation implementation The current yacht fleet is sufficient for initial implementation of the cruise line

17 Risks and mitigation Risk Blockchain implementation fails Automation does not achieve ROI Customers do not pay for delivery Lack of interest in private cruises Cruise ships too costly Mitigation Utilize legacy system Obtain operations management experts Promote in-store and online shopping synergies Provide similar personalized services in-store Increase luxuriousness or sell ships to Norwegian Cruise Line

18 Conclusion Maintain current workforce Utilize technological advancements to streamline operations Increase personal touch to appease customer expectations Maintain strong supplier relationships